The Hang Seng Index gained 61 points, or 0.3%, closing at 20,568 on Monday, marking a second consecutive session of gains. This upward momentum was supported by advances in all sectors, particularly in technology and consumer goods. The rise in Chinese stocks contributed to the positive sentiment, with traders optimistic that the Chinese parliament will ratify spending and debt initiatives during its meeting this week, aimed at bolstering local governments and stimulating economic growth.
In a notable development, Saudi Arabia’s Public Investment Fund has agreed to back Hong Kong-related companies seeking to expand into the Middle East, creating a USD 1 billion investment fund. However, the potential for further gains remains constrained due to concerns surrounding the upcoming U.S. presidential election, the Federal Reserve's interest rate decision, and important economic indicators such as the Consumer Price Index and Producer Price Index data from China this weekend.
Among the notable stock performances, Trip.Com surged 4.9%, Kuaishou Technology rose 3.9%, Li Auto increased 2.0%, and Wuxi Biologics gained 2.5%. In contrast, shares of BYD Co., the leading electric vehicle manufacturer, saw a slight decline of 0.3% despite rorting strong sales in October.
Looking ahead, the main stock market index in Hong Kong, known as HK50, has increased by 3,520 points or 20.65% since the start of 2024. Experts predict it will trade at approximately 19,878.63 points by the quarter's end, with estimates placing it at 18,214.74 points in a year’s time.